When is it a good time to refinance my home loan to lower my interest rate?

When is it a good time to refinance my home loan to lower my interest rate?

Are you thinking about refinancing your home into a lower fix rate and possibly pull cash out to pay off high balance credit card debt or some need home repairs? There is no better time than now, rates are still low and home values are stabilizing. As I drive around my town of Rancho Cucamonga, CA I am seeing more and more open house signs. As I see more of these for sale signs, that is an indication that we may be moving from a seller’s market to a buyer’s market and generally when that happens, home prices go down.

Is It Time to Refinance My Home Loan?

Time to take action in NOW because you may not have the equity in your home to refinance into a lower fix rate or refinance out of an adjustable home loan or get rid of mortgage insurance that you are paying.

The values are up and this is the time to take advantage of it before the values are no longer there. I know the home loan process may feel like going to the dentist, but in the end it is worth it. Also, there as been some changes in the refinance home loan process to make the steps flow a little smoother.

Before we proceed with the home loan process to refinance into a monthly savings, we will recognize, address the benefits and present your options to you and your family to review. Some benefits with a home refinance can be:

You have mortgage insurance within your monthly mortgage payment and you would like to eliminate that payment. As of June 3rd 2013 all FHA home loans that purchase and putting 3.5% down payment, that mortgage insurance will remain through the term of the loan, only way to get rid of it is to, refinance out of the FHA home loan program into a Conventional program

Pull cash out to pay off debt, your new payment will have a huge impact on your monthly savings once you pay off student loan or credit card debt

Pull cash out to improve your overall appearance of your home to suit your lifestyle or invest in some much needed home repair, such as a new roof, remodel kitchen or bathroom

Refinance from a 30 year to into a 20 or 15 year fix term to reduce your interest paid on a 30 year term

Can miss up to 2 of mortgage payments, image what you can do with those 2 months off from paying a mortgage

It will not hurt to have a conversation with me about your options, my goal is to present you with your options and if you are not in the position to refinance your right away. We can work on a plan to get you in the position refinance 2 or 3 months down the road. The best thing you can do for yourself is know your options from a licensed mortgage professional such as myself.

You may be surprised on what your options are with a home refinance, find out what you have before it is to late and the rates increase beyond a saving point or the values begin to decrease in your area. Like the old saying, what goes up must come down and that holds true for the value in your home.

If you lose equity in your home, that will come back in time but the interest rates are much more likely go up and up. When I started in the mortgage business in 1988 (junior in high school) the average home loan rate was 12% and we still had a market back then and at the height of the real estate market in 2005, the rates were in the 6% range and we still had people purchasing and refinancing homes.

You do not want to see the interest rates in the 5 or 6% range and knowing you should have refinanced when the rates were at current levels of 4.50% on a 30 year fix like they are now. Lets get started and explore the possibility of refinancing your home loan to save thousands of dollars over the life of the loan.

by Nathan Rufty

About the author

Nathan Rufty

I have been a part of the Mortgage Industry since 1988 and have witnessed the ups and downs for 25 years. When refinancing or purchasing a home this is what you need to have on your side; experience, professionalism and top customer service.
I am licensed in the state of California to perform the duties as a Mortgage Professional and I uphold the highest level of customer service and integrity.

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